Aldar Properties PSJC (“Aldar”), the largest listed real estate company in the United Arab Emirates (UAE) by market capitalization, today reported a 30% year on year increase in revenue to AED 2.1 billion. Gross profit was up 5% to AED 696 million and net profit rose 8% to AED 416 million, driven by record quarterly home sales in its core market, Abu Dhabi.
Aldar produced a 7% year-on-year increase in development sales to a record AED 1.2 billion for the third quarter. This brought year to date total sales to AED 2.0 billion, with prime Abu Dhabi destinations of Saadiyat Island and Yas Island continuing to attract investors and end-users.
The Abu Dhabi real estate market has held firm this year despite the challenging global macro-economic environment, supported by incentives for home buyers, measured supply of new units, and government programmes to promote private sector growth. Collections from units being handed over and projects under development were also very strong, with AED 3.1 billion collected year to date.
Aldar’s large portfolio of investment properties has displayed a high degree of stability despite the difficult operating environment due to Covid-19, with average occupancy across the diversified retail, commercial and residential assets standing at 87%. The Company also continued to earn steady income from its third-party development management business, which is set to expand further following a new mandate granted in late October (post Q3 reporting period) to take over the development and management of over AED 30 billion of Abu Dhabi Government capital projects.
Talal Al Dhiyebi, Chief Executive Officer of Aldar said, “The strength of Aldar’s business continues to be demonstrated in this challenging year, with our highly diversified business model delivering strong earnings.
The company benefits from two core businesses, comprising a large and diverse, actively managed income-generating investment portfolio and a development business of premier destinations. These provide strong cash flows, revenue visibility as well as meaningful revenue and profit growth.
Given the company’s balance sheet strength and robust cash position, Aldar continues to actively pursue opportunities to invest in both our development pipeline and in expanding our investment portfolio.
Strong sales at our prime developments reflects sustained investor confidence in Abu Dhabi’s real estate fundamentals, which are supported by the Government’s commitment to implement its economic growth and diversification strategy. Aldar is proud to be partnering with the Abu Dhabi Government as it invests further in strategic capital projects.”
